$7.$ Samsung Group is considering a change to activity$-$based product costing. The company produces two products, mobile phones and tablet PCs$,$ in a single production department. The production department is estimated to require $3,750$ direct labor hours. The total indirect labor is budgeted to be $$375,000.$

Time records from indirect labor employees revealed that they spent $40\%$ of their time setting up production runs and $60\%$ of their time supporting actual production.

The following information about mobile phones and tablet PCs was determined from the corporate records: